Mrs. Sharma buys 85 shares (par value Rs. 100) at Rs. 150 each.
Mrs. Sharma buys 85 shares (par value Rs. 100) at Rs. 150 each.
(i) If the dividend is 6.5%, what will be her annual income?
(ii) If she wants to increase her income by Rs. 260; how much more should she invest?
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1 Answers
Par value of 85 shares = Rs. 100 × 85 = Rs. 8,500
Market value of 85 shares = Rs. 150 × 85 = Rs. 12,750
(i) Dividend% = 6.5%
Dividend = 6.5% of Rs. 8,500
= (6.5/100) × 8,500 = Rs. 552.50 Ans
(ii) Required income = Rs. 552.50 + Rs. 260 = Rs. 812.50
If income is Rs. 552.50,then investment is Rs. 12,750
If income is Rs. 812.50, then investment is = (12,750/552.50) ×812.50
= Rs. 18,750
More investment required = Rs. 18,750 – Rs. 12,750
= Rs. 6,000 Ans
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